First Zim firm to list on JSE aims to raise $15m

The Johannesburg Stock Exchange (JSE) building in Sandton. It has operated as a market place for the trading of financial products for nearly 125 years.

Malcom Sharara

Johannesburg – Brainworks Limited, a diversified investment holding company with investments focused on Zimbabwe, on Friday became the first Zimbabwean company to have a primary listing on the JSE.

In a telephone interview soon after listing, CEO Brett Childs told Fin24 that the listing opens new avenues for the company to not only raise capital, but also offer international investors access to Zimbabwean assets.

“We are very excited about today’s listing and we feel we have achieved what we set out to do, that is to list on an international trading platform such as the JSE,” said Childs.

However the company, which listed at a price of R11.50 per share, did not raise money on the listing day.

“The next step for us now is to approach potential and qualifying investors and raise the funds that we need.

“We are looking at raising $15m and half of that money will be used to retire our debt obligations, while the balance will be invested into our various operations,” said Childs.

“There is no minimum capital requirement to be realised by the offer. Applications pursuant to the offer must be for a minimum of R1m.”

Childs said the company will also use treasury shares as a way of giving Zimbabwe-based investors a chance to participate as shareholders.

“Yes, we are working on a facility with the Reserve Bank of Zimbabwe, which will allow Zimbabwean investors to buy shares of the company without the need to source for foreign currency. We will use treasury shares to that effect,” said Childs.

Brainworks operates seven resort hotels and four city hotels in Zimbabwe, with some of them under the management of South Africa’s Legacy Hotels and Resorts.

It is also invested in the fintech sector through Getsure, a microfinance life insurer, Getcash, which operates an ewallet and mobile platform and operates GetBucks Microfinance Bank Limited, a subsidiary of MyBucks, a German Fintech business listed on the DAX.